{"id":391511,"date":"2026-04-10T11:27:13","date_gmt":"2026-04-10T11:27:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/391511\/"},"modified":"2026-04-10T11:27:13","modified_gmt":"2026-04-10T11:27:13","slug":"aws-ponders-selling-its-home-grown-chips-by-the-rack-load-the-register","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/391511\/","title":{"rendered":"AWS ponders selling its home-grown chips by the rack-load \u2022 The Register"},"content":{"rendered":"

Amazon CEO Andy Jassy on Thursday delivered his annual letter to shareholders<\/a> and it\u2019s full of interesting news about the cloud and e-tail giant.<\/p>\n

One detail that caught The Register\u2019s eye was Jassy\u2019s assertion that \u201cIf our chips business was a stand-alone business, and sold chips produced this year to AWS and other third parties (as other leading chips companies do), our annual run rate would be ~$50 billion.\u201d<\/p>\n

\u201cThere\u2019s so much demand for our chips that it\u2019s quite possible we\u2019ll sell racks of them to third parties in the future,\u201d he added.<\/p>\n

The CEO also revealed \u201ctwo large AWS customers have already asked if they could buy *all* of our Graviton instance capacity in 2026,\u201d a reference to cloudy servers powered by Amazon\u2019s home-grown CPUs. Jassy says the company denied those requests, but added that Amazon earns $20 billion from services powered by its homegrown chips.<\/p>\n

Plenty of that comes from its Trainium AI chips, which Jassy said are in such high demand that capacity for services running the Trainium3, which shipped early this year, \u201cis nearly fully-subscribed.\u201d He said \u201cA significant chunk\u201d of services powered by Trainium4, which Amazon won\u2019t make broadly available for about 18 months, \u201chas already been reserved.\u201d<\/p>\n

Jassy also expects Trainium \u201cwill save us tens of billions of capex dollars per year, and provide several hundred basis points of operating margin advantage versus relying on others\u2019 chips for inference.\u201d<\/p>\n

The CEO also pointed out that three years after opening its doors, AWS\u2019s revenue run rate was $58 billion. In the same amount of time, the cloud colossus has won a $15 billion book of AI revenue. He also noted that while AWS annual revenue is currently $142 billion, 85 percent of global IT spend remains on-premises.<\/p>\n

\u201cThis will change,\u201d he wrote.<\/p>\n

Jassy said AWS would grow even faster if it could get its hands on more electricity, having added 3.9 gigawatts of new capacity in 2025, and expects to double total power capacity by the end of 2027.<\/p>\n

\u201cAnd yet, we still have capacity constraints that yield unserved demand,\u201d he lamented.<\/p>\n

Flying high<\/p>\n

Jassy also discussed Amazon\u2019s aerial efforts, saying its satellite broadband service \u201cis officially scheduled to launch in mid-2026\u201d with around 200 satellites.<\/p>\n

Prime Air, the company\u2019s drone delivery service, now has \u201ca design that\u2019ll scale\u201d and \u201cplans to serve communities with 30 million customers by year-end, and expects to deliver half a billion packages by the end of this decade.\u201d<\/p>\n

Jassy said Prime Air will fly from \u201cSame Day Fulfillment Centers\u201d that store Amazon\u2019s 90,000 best-selling products and deliver within 30 minutes. Another service, Amazon Now, will use \u201cmicro-fulfillment centers\u201d that stock mere thousands of products and deliver in 20 minutes. Amazon already has more than 360 micro-fulfillment centers in India.<\/p>\n

The Amazon in Chief also touched on robotics, revealing that the company has \u201cover one million robots operating in fulfillment centers helping with stowing, picking, sorting, and intra-facility transport.\u201d<\/p>\n

\u201cWe’ve done this while continuing to be one of the largest job creators in the country,\u201d he added, before foreshadowing further work \u201con form factors, use case diversity, agility, grasping, and intelligence.\u201d<\/p>\n

Again, he hinted that Amazon might become a vendor.<\/p>\n

\u201cWherever we can leverage our scale and real-time feedback loop from so many robots in our fulfillment network to build robotics solutions for other industrial and consumer customers, we\u2019ll explore doing so,\u201d he wrote.<\/p>\n

The letter also contains lots of corporate guff that readers may find distressing, most of it on a theme of the best-laid business plans seldom proving correct and a willingness to change direction as a key value for success.<\/p>\n

Jassy said learning how to use AI will follow the same pattern.<\/p>\n

\u201cIt\u2019s not hard to imagine with the emergence of AI, that the interface with which customers want to interact with a retailer could be substantially different over time,\u201d he wrote. \u201cIt may take us a while to find experiences better than what we have now, and it may take consumers time to adopt these new experiences.\u201d<\/p>\n

The CEO is, however, confident Amazon will get a bigger piece of everything it wants. \u00ae<\/p>\n","protected":false},"excerpt":{"rendered":"Amazon CEO Andy Jassy on Thursday delivered his annual letter to shareholders and it\u2019s full of interesting news…\n","protected":false},"author":2,"featured_media":391512,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,61,60,80],"class_list":{"0":"post-391511","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-ie","12":"tag-ireland","13":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/391511","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=391511"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/391511\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/391512"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=391511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=391511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=391511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}